Rev. Proc. 79-65
Rev. Proc. 79-65; 1979-2 C.B. 579
- Cross-Reference
26 CFR 601.105: Examination of returns and claims for refund,
credit, or abatement; determination of correct tax liability.
(Also Part I, Section 167; 1.167(a)-11.)
- Code Sections
- LanguageEnglish
- Tax Analysts Electronic Citationnot available
Superseded by Rev. Proc. 83-35
Section 1. Purpose
The Assistant Secretary (Tax Policy) of the Treasury prescribes, in this Revenue Procedure, under section 1.167(a)-11 of the Income Tax Regulations, a revised class 35.0, Manufacture of Electrical and Non-Electrical Machinery and Other Mechanical Products; a new class 36.0, Manufacture of Electronic Components, Products, and Systems; and a revised class 22.3, Manufacture of Carpets, and Dyeing, Finishing, and Packaging of Textile Products and Manufacture of Medical and Dental Supplies.
The new and revised asset guideline classes, and associated asset guideline depreciation periods, asset depreciation range periods, and annual asset guideline repair allowance percentages are set forth in Section 2 of this Revenue Procedure.
Sec. 2. Asset Guideline Classes, Asset Guideline Periods, Asset Depreciation Ranges, and Annual Asset Guideline Repair Allowance Percentages
The asset guideline classes, asset guideline periods, asset depreciation ranges, and annual asset guideline repair allowance percentages are prescribed as set forth below.
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Asset depreciation Annual
range (in years) asset
-------------------- guide-
line
repair
Asset allo-
guide- Asset wance
line Lower guideline Upper percen-
class Description of assets included limit period limit tage
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22.3 Manufacture of Carpets, and
Dyeing, Finishing, and Pack-
aging of Textile Products and
Manufacture of Medical and
Dental Supplies:
Includes assets used in the
production of carpets, rugs,
mats, woven carpet backing,
chenille, and other tufted
products, and assets used in
the joining together of back-
ing with carpet yarn or
fabric. Includes assets used
in washing, scouring, bleach-
ing, dyeing, printing, drying,
and similar finishing
processes applied to textile
fabrics, yarns, threads, and
other textile goods. Includes
assets used in the production
and packaging of textile pro-
ducts, other than apparel, by
creasing, forming, trimming,
cutting, and sewing, such as
the preparation of carpet and
fabric samples, or similar
joining together processes
(other than the production of
scrim reinforced paper pro-
ducts and laminated paper pro-
ducts) such as the sewing and
folding of hosiery and panty
hose, and the creasing, fol-
ding, trimming, and cutting of
fabrics to produce nonwoven
products, such as disposable
diapers and sanitary products.
Also includes assets used in
the production of medical and
dental supplies other than
drugs and medicines. Assets
used in the manufacture of
nonwoven carpet backing, and
hard surface floor covering
such as tile, rubber, and
cork, are elsewhere clas-
sified _______________________ 7 9 11 15
35.0 Manufacture of Electrical and
Non-Electrical Machinery and
Other Mechanical Products:
Includes assets used to manu-
facture or rebuild finished
machinery and equipment and
replacement parts thereof such
as machine tools, general
industrial and special indus-
try machinery, electrical power
generation, transmission, and
distribution systems, space
heating, cooling, and refrige-
ration systems, commercial and
home appliances, farm and
garden machinery, construction
machinery, mining and oil
field machinery, internal com-
bustion engines (except those
elsewhere classified), tur-
bines (except those that power
airborne vehicles), batteries,
lamps and lighting fixtures,
carbon and graphite products,
and electro-mechanical and
mechanical products including
business machines, instru-
ments, watches and clocks, ven-
ding and amusement machines,
photographic equipment, medical
and dental equipment and appli-
ances, and ophthalmic goods.
Includes assets used by manu-
facturers or rebuilders of such
finished machinery and equip-
ment in activities elsewhere
classified such as the manufac-
ture of castings, forgings,
rubber and plastic products,
electronic subassemblies or
other manufacturing activities
if the interim products are
used by the same manufacturer
primarily in the manufacture,
assembly, or rebuilding of such
finished machinery and equip-
ment. Does not include assets
used in mining, assets used in
the manufacture of primary fer-
rous and non-ferrous metals,
assets included in guideline
class 00.11 through 00.4 and
assets elsewhere classified __ 8 10 12 11
36.0 Manufacture of Electronic Com-
ponents, Products, and Systems:
Includes assets used in the
manufacture of electronic com-
munication, computation, ins-
trumentation and control sys-
tems, including airborne appli-
cations; also includes assets
used in the manufacture of
electronic products such as
frequency and amplitude modu-
lated transmitters and re-
ceivers, electronic switching
stations, television cameras,
video recorders, record players
and tape recorders, computers
and computer peripheral ma-
chines, and electronic instru-
ments, watches, and clocks;
also includes assets used in
the manufacture of components,
provided their primary use is
in products and systems defined
above such as semiconductors,
electron tubes, capacitors,
coils, resistors, printed cir-
cuit substrates, switches, har-
ness cables, lasers, fiber
optic devices, and magnetic
media devices. Specifically ex-
cludes assets used to manufac-
ture electronic products and
components, photocopiers, type-
writers, postage meters and
other electromechanical and
mechanical business machines and
instruments that are elsewhere
classified ___________________ 5 6 7 8
Sec. 3. Effect on Other Documents
Rev. Proc. 77-10, 1977-1 C.B. 548, as revised by Rev. Proc. 78-4, 1978-1 C.B. 555, and by Rev. Proc. 79-35, page 498, this Bulletin, is modified by the revision of class 35.0, Manufacture of Machinery, and deletion of classes 36.1, Manufacture of Electrical Equipment; 36.11, Manufacture of Electrical Equipment--Special Tools; 36.2, Manufacture of Electronic Products; and 38.0, Manufacture of Professional, Scientific, and Controlling Instruments.
Rev. Proc. 77-10, as subsequently modified, is revised by the revision and new designation of class 35.0 as Manufacture of Electrical and Non-Electrical Machinery and Other Mechanical Products. Revised class 35.0 includes assets used to manufacture machinery formerly included in that class, assets used to manufacture electrical equipment formerly included in classes 36.1 and 36.11, and assets used to manufacture electro-mechanical and mechanical products including instruments, medical and dental equipment and appliances, photographic equipment, and ophthalmic goods formerly included in class 38.0.
Rev. Proc. 77-10 is also revised by the prescription of new class 36.0, Manufacture of Electronic Components, Products, and Systems. New class 36.0 includes assets used to manufacture electronic products, components and accessories formerly included in classes 36.1 and 36.11, electronic products formerly included in class 36.2, and electronic instruments, watches, and clocks formerly included in class 38.0.
Rev. Proc. 77-10 is also modified by the revision of class 22.3, now designated Manufacture of Carpets, and Dyeing, Finishing, and Packaging of Textile Products and Manufacture of Medical and Dental Supplies. Revised class 22.3 includes assets used to manufacture medical and dental supplies that were formerly included in class 38.0.
Sec. 4. Effective Date
This Revenue Procedure is effective for assets placed in service in taxable years ending on or after December 31, 1979.
- Cross-Reference
26 CFR 601.105: Examination of returns and claims for refund,
credit, or abatement; determination of correct tax liability.
(Also Part I, Section 167; 1.167(a)-11.)
- Code Sections
- LanguageEnglish
- Tax Analysts Electronic Citationnot available
